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The Direct Method Moon Furniture had the following budgeted overhead costs: Traditionally, Power cost is allocated based on number of employees, and Maintenance cost is

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The Direct Method Moon Furniture had the following budgeted overhead costs: Traditionally, Power cost is allocated based on number of employees, and Maintenance cost is allocated based on floor space. Required: 1. Allocate the cost of the service departments to the production departments using the direct method. 2. Calculate the departmental overhead rate for Assembly and Finishing, assuming machine hour is the cost driver for both departments. 3. What if Power cost is allocated based on floor space, and Maintenance cost is allocated based on number of employees

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